Table of Content

Abandoned Baby Candlestick Pattern: Both Bearish and Bullish

This article covers trading with the Bearish and Bullish type Abandoned Baby Candlestick Pattern.

Topic: Abandoned Baby

Type: Dual

Trend direction: Reversal

Image showing the Abandoned Baby Candlestick pattern on the Ford Motor Company Stock chart.
Abandoned Baby Candlestick on Ford Motor Company Stock chart

🙋‍♂️Hi friends, we see that the Forex market, which is open 24/5 around the 🌏world, is gaining more and more popularity. In addition to the foreign exchange market, “technical analysis” is becoming indispensable, especially in today's world of cryptocurrencies, indices, commodities and stocks. The Alphabet of technical analysis is, of course,🎌Japanese Candlesticks. Candlesticks tell us the story behind price movements. Accordingly, reading the candlestick chart correctly allows us to make profitable trades and succeed in the market. In today's article, we will talk about one of the various candlestick patterns, the 🎈“Abandoned Baby Candlestick” pattern.

The Abandoned Baby Candlestick Pattern is attracting the attention of traders in Apple Inc Stocks.
Abandoned Baby Candlesticks


 ❓ Why is it called that?

This formation, consisting of three candles, is 🗣called the “Abandoned Baby Candlestick Formation” because it appears to be abandoned by the first and third candlesticks, and due to the Doji that occurs in the second candlestick. The second candlestick is separated from the first and third candlesticks through a gap. See example picture

There are two types of Abandoned Baby Candlesticks:

  1. Abandoned Baby Candlestick Bearish 🐻
  2. Abandoned Baby Candlestick Bullish 🐮


 1️⃣Abandoned Baby Candlestick Bearish:

Bearish Abandoned Baby Candlestick Pattern Reversal signal for the market.
Abandoned Baby bearish

  ❓ How does it occur? 

This pattern occurs when there is a gap between the candlestick preceding a Doji-like candle. The preceding candlestick represents a small-bodied, long green (or white) candle, indicating an uptrend in the market. Next, the Doji appears with a gap from the highest price of the following candlestick. This situation indicates indecision between buyers and sellers during a certain period. The market's opening price being different from the closing price creates these gaps. The next candlestick is a long red (or black) candle with small shadows. This condition signifies that bears (sellers) are gaining 💪strength.


The Bearish Abandoned Baby Candlestick pattern on Apple Inc stock is an important technical analysis tool used to identify buy and sell points. With this pattern, traders can evaluate potential market reversal signals and risk management strategies.
Bearish Abandoned Baby in Apple Inc. stock

  ❓ How do we trade?

When a “Bearish Abandoned Baby Candlestick” appears, it is considered a signal for a top reversal or at least a short-term reversal in a rising price. The confirmation level of this Candlestick pattern is set at the last closing price, thus confirming the pattern. If prices break this level to the downside, it is a positive trading signal.


 2️⃣Abandoned Baby Candlestick Bullish:

Bullish Abandoned Baby Candlestick Pattern Reversal signal for the market.
Abandoned Baby bullish

  ❓ How does this pattern appear?

The First Candlestick is seen as a long red (or black) candlestick during a downtrend, indicating that the market is under the control of bears (sellers). The Second Candlestick is a small-bodied candlestick with a long shadow, or a Doji, positioned just below or beside the first candle. There is a gap between them. This candle suggests that the market is becoming uncertain, and the strength of the downtrend is weakening. The Third Candlestick forms a long green (or white) candlestick above the second candle. This green candle indicates that the bearish strength has been broken, signaling the beginning of an uptrend with the 💪strengthening of bulls (buyers)., Inc. stock Technical Analysis with Bullish Abandoned Baby Candlestick with Stop-Loss and Entry Levels
Bullish Abandoned Baby in, Inc. stock

  ❓ Which steps should we follow to trade?

When the “Bullish Abandoned Baby Candlestick” appears on the charts during a downtrend, it is known as a reversal signal, indicating a possible turnaround or at least a short-term reversal. With the expectation that the price will continue to rise, if the price moves upward, breaking above the high of the third candle, it is commonly considered a buying opportunity. As a standard practice, a Stop Loss order is placed below the lower shadow of the bullish abandoned baby candle (doji) to limit probable losses. For those who wish to take less risk, a stop-loss order can be placed just below the low of the third candle in the pattern.

While forming the “Abandoned Baby Candlestick”, there are no distinct rules for setting profit targets, but generally, a 🌐 Fibonacci retracement level is often used as a profit target. This applies to both Bear and Bull markets.

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